In Re Subpoenas to Local 478, International Union of Operating Engineers and Benefit Funds

708 F.2d 65, 114 L.R.R.M. (BNA) 2141, 1983 U.S. App. LEXIS 27512
CourtCourt of Appeals for the Second Circuit
DecidedMay 19, 1983
Docket599, Docket 82-6163
StatusPublished
Cited by19 cases

This text of 708 F.2d 65 (In Re Subpoenas to Local 478, International Union of Operating Engineers and Benefit Funds) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Subpoenas to Local 478, International Union of Operating Engineers and Benefit Funds, 708 F.2d 65, 114 L.R.R.M. (BNA) 2141, 1983 U.S. App. LEXIS 27512 (2d Cir. 1983).

Opinions

OAKES, Circuit Judge:

This is an appeal from denial of motions brought by a union challenging a Special Grand Jury investigation of it and its benefit funds. The Union alleges governmental harassment through the issuance and administration of multiple subpoenas. The Union sought to terminate the investigation, to quash subpoenas ad testificandum issued to sixteen clerical employees, and to order an inventory and return of original documents retained by the Special Grand Jury. The United States District Court for the District of Connecticut, Ellen Bree Burns, Judge, held that while the Union did have standing, it had failed to sustain its burden of overcoming the presumption of regularity attaching to grand jury proceedings. She found no reason to take the “unprecedented and extraordinary” action of terminating the grand jury proceedings even if the court had supervisory powers to do so. The court further held that it would decline to quash the subpoenas ad testifi-candum because there was a lack of showing that the investigation was undertaken in bad faith, that the subpoenas were intended to harass the Union, or that the information sought was wholly irrelevant to the investigation. She accepted the Union’s inventory of documents in the Grand Jury’s possession, but declined to order their return because the Government substantiated the Grand Jury’s need to retain them. The Union appealed Judge Burns’s order on each of its motions. We find that denial of the Union’s motion for return of documents is appealable as a final order, and we affirm as to it. The district court’s denial of the remaining motions to terminate the investigation and to quash subpoenas ad testifi-candum issued to clerical employees, however, does not constitute an appealable order. Because the Union has not alleged facts bringing it within the narrow group of exceptions to the final order rule, we dismiss the appeal from that denial.

1. The Investigation

Successive federal grand juries in Connecticut have been investigating possible [68]*68embezzlement and record-keeping violations of Local 478 of the International Union of Operating Engineers (the Union), and its five welfare and benefit funds. A United States Department of Justice Strike Force (the Government) presented testimony and material for the Special Grand Jury’s consideration. The district court had been required to mediate between the Union and the Government on several occasions prior to the filing of the motions involved in this appeal, taken during the ongoing grand jury investigation. Here, as in the district court, the Union and the Government present quite different pictures of what, why, and how the documents were sought.

Counsel for the Union describes thirty-five subpoenas issued over a two year period to the Union and its Welfare Fund, Pension Fund, Officers and Employees Pension Fund, Apprenticeship Skills Training Fund, and Supplemental Unemployment Benefit Fund, all located at the Union headquarters in Hamden, Connecticut. Nineteen subpoenas were issued to officers and custodians of records to produce cash receipt and disbursement journals, cancelled checks, and the like. The Union describes these subpoenas as abusive because they were overbroad, duplicative, and administratively burdensome. It complains, for example, that the Government demanded production of 120,000 checks in nine days without specifying month, year, and account, and unnecessarily retained original ledgers and business-keeping records without even providing the Union with receipts. When custodians claimed a privilege not to authenticate certain records, the Government served subpoenas on sixteen clerical personnel. Service on a Friday required appearance to testify the following Wednesday, and, the Union asserts, “frightened the clerical personnel. All work stopped.” Cumulatively, “the Government’s abuse of Grand Jury process impaired the function of the Local and the Funds by taking people away from work, scattering important documents, and destroying morale.” Union Brief at 17.

The Government, on the other hand, describes a good faith investigation of possible federal law violations — embezzlement from union funds, 29 U.S.C. § 501(c), and violations of restrictions on payments and loans to labor organizations, 29 U.S.C. § 186— that involved precisely the subpoenaed records. In light of the custodian’s assertion of a Fifth Amendment privilege not to authenticate fund records, the Government subpoenaed secretaries and file clerks who regularly worked with the records and presumably could authenticate them. Because the clerical employees would not have the same fiduciary relationship to the Union and its Funds as the subpoenaed officers, the Government believed there was little likelihood that they could incriminate themselves, and that the workers who did the actual posting could testify as to the nature of their work and their knowledge of the documents. Government’s Omnibus Response to Union Motion at 9.

2. Appeal of Orders Relating to Ongoing Grand Jury Investigations

A properly taken appeal gives this court a power to review, not a power to intervene. Cohen v. Beneficial Industrial Loan Corp., 337 U.S. 541, 546, 69 S.Ct. 1221, 1225, 93 L.Ed. 1528 (1949). Our jurisdiction under 28 U.S.C. § 1291 encompasses only “final decisions of the district courts.” The finality requirement of § 1291 “embodies a strong congressional policy against piecemeal reviews, and against obstructing or impeding an ongoing judicial proceeding by interlocutory appeals.” United States v. Nixon, 418 U.S. 683, 690, 94 S.Ct. 3090, 3098, 41 L.Ed.2d 1039 (1974). See also Firestone Tire & Rubber Co. v. Risjord, 449 U.S. 368, 374, 101 S.Ct. 669, 673, 66 L.Ed.2d 571 (1981) (permitting piecemeal appeals would undermine the independence of the district judge); Eisen v. Carlisle & Jacqueline, 417 U.S. 156, 170, 94 S.Ct. 2140, 2149, 40 L.Ed.2d 732 (1974) (rule promotes efficient judicial administration); Cobbledick v. United States, 309 U.S. 323, 325, 60 S.Ct. 540, 541, 84 L.Ed. 783 (1940) (rule accords with policy against obstruction, harassment and cost of successive appeals).

[69]*69In applying the finality principle to orders relating to ongoing grand jury proceedings, courts have repeatedly held that orders denying motions to quash subpoenas are not final orders and therefore are not appealable. Cobbledick v. United States, 309 U.S. at 327-28, 60 S.Ct. at 542-543. Balancing the public interest in safeguarding grand jury proceedings from undue interruption and a witness’s interest in asserting a right not to comply with a grand jury request, the Supreme Court has concluded that the availability of court review of the claim in a contempt proceeding “ ‘is adequate for [the witness’s] protection without unduly impeding the progress of the case.’ ” Cobbledick v. United States, 309 U.S.

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708 F.2d 65, 114 L.R.R.M. (BNA) 2141, 1983 U.S. App. LEXIS 27512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-subpoenas-to-local-478-international-union-of-operating-engineers-ca2-1983.